Financial Daily from THE HINDU group of publications
Saturday, Feb 09, 2002
Financial Daily from THE HINDU group of publications Saturday, Feb 09, 2002 |
|
|
|
|
|
Markets
-
Mutual Funds BoB Growth redemption price may stay at par Our Bureau
KOLKATA, Feb. 8 BANK of Baroda Mutual Fund's close-ended equity scheme, BOB Growth '95, is slated to come up for redemption during the end of current fiscal. The redemption price, it was hinted, may not be too far removed from the offer price of Rs 10 per unit. The growth fund, according to Mr B Krishna Kumar, MD of BOB Asset Management Co, will be redeemed during the period December 2002-March 2003. The fund, which currently has an NAV of around Rs 10, has a tight corpus. ``The redemption price, we acknowledge, will not be quite high. BOB Growth was a close-ended scheme, which has in the past tried to reward investors by way of dividends,'' Mr Kumar said. The fund, which accounts for a good portion of the MF's total assets under management, had also offered a `safety net' to investors. This allowed them to exit at a pre-determined price equivalent to the face value of the units. However, only a handful of investors — not more than 80 odd — utilised the safety net to pull out. According to the MF's data pertaining to the half-year ended September 30, 2001, the fund had NAVs of Rs 8.37 at the beginning of the previous fiscal (as on April 1, 2001) and Rs 10.06 as on September 16, 2002. Fiscal 1999-2000 was a positive year for the fund, thanks to a 10-per cent dividend and an increase in net assets over the previous period. The assets, however, dipped significantly in the following year. BOB Growth is one of the MF's four existing products, the other three being close-ended equity-linked savings schemes — ELSS 95, ELSS 96 and ELSS 97. All the tax-saving funds have small assets. The MF, Mr Kumar said, was currently focussing on three forthcoming schemes — income, gilt and liquid — which are expected to open on February 14 for initial subscription. The MF, he added, might come out with balanced and index funds later.
Send this article to Friends by E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|